Asset Turnover definition
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- Asset Turnover. A ratio of a company's net sales to total assets. It is a measure of how efficiently management is using the assets at its disposal to promote sales.A high ratio indicates that the company is using its assets efficiently to increase sales, while a low ratio indicates the opposite.sset turnover measures a firm's efficiency at using its assets in generating sales or revenue; the higher the number, the better. It also reflects pricing strategy; companies with low profit margins tend to have high asset turnover, whereas those with high profit margins have low asset turnover.
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- What is 'Asset Turnover Ratio'. Asset turnover ratio is the ratio of the value of a company’s sales or revenues generated relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.
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Acupressure to Induce labor To stimulate the first pressure point, pinch the webbing of your hand and rub in a circular motion for 30-60 seconds at a time, taking a 1-2 minute break in between contractions. For the latter point, press firmly on the spot. It should feel sore if you've found the right spot.
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- Investopedia explains Turnover. (1) In accounting, turnover often refers to inventory or accounts receivable. A quick turnover is desired because it means that inventory is not sitting on the shelves for too long.
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Mutual fund Turnover is a measure of the volume of a fund's securities trading. It is expressed as a percentage of average market value of the portfolio's long-term securities. Turnover is the lesser of a fund's purchases or sales during a given year divided by average long-term securities market value for the same period.
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- Asset Turnover Ratios. Asset turnover ratio is the ratio of a company's sales to its assets. It is an efficiency ratio which tells how successfully the company is using its assets to generate revenue. There are a number of variants of the ratio like total asset turnover ratio, fixed asset turnover ratio and working capital turnover ratio.
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Difference between Turnover and Revenue According to Wikipedia and multiple web pages, revenue is the term used for money acquired by the sale of goods. This definition is also termed as turnover in the United Kingdom. Hence, there is no difference in the definition of these two terms. However, when we look at the business and accounting aspect of the two, there is actually a huge difference between turnover and revenue in accounting. Turnover refers to how many times a company burns through assets such as cash, inventory, workers, etc.
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- Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios, asset utilization ratios, or asset management ratios. Two commonly used asset turnover ratios are receivables turnover and inventory turnover.
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- In the AHS, turnover is defined as the percent of occupied apartments in which the residents moved in during the previous 12 months; it cannot exceed 100%. Operating Costs of Multifamily Rental Housing draft of December 18, 2003 9.
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- Inventory Turnover Ratio. Inventory turnover calculates the frequency a company sells its entire inventory within a given financial reporting period. This can be calculated for every type of inventory, including materials used during the manufacturing process, work in progress (WIP), and finished products.
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- (50). 1. A measure of the number of times a company's inventory is replaced during a given time period. Turnover ratio is calculated as cost of goods sold divided by average inventory during the time period. A high turnover ratio is a sign that the company is producing and selling its goods or services very quickly.2.. A measure of the number of times a company's inventory is replaced during a given time period. Turnover ratio is calculated as cost of goods sold divided by average inventory during the time period.
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- (2) The number of shares traded in a specific period expressed as a percentage of the total shares in a portfolio or traded on an exchange. Investopedia explains Turnover. (1) In accounting, turnover often refers to inventory or accounts receivable. A quick turnover is desired because it means that inventory is not sitting on the shelves for too long.
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Inventory turnover In accounting, the Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year.The equation for inventory turnover equals the Cost of goods sold divided by the average inventory.Inventory turnover is also known as inventory turns, merchandise turnover, stockturn, stock turns, turns, and stock turnover.n accounting, the Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year.
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turnover Noun. 1. turnover-the ratio of the number of workers that had to be replaced in a given time period to the average number of workers. employee turnover, turnover rate. ratio-the relative magnitudes of two quantities (usually expressed as a quotient).. 1. The act or fact of turning over: preventing the turnover of vehicles in accidents. 2. An abrupt change or transfer, as of power or ownership. 3.
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How to Calculate Business Turnover Business turnover is a numeric value representing total sales. It is essentially the value of sales you make in a set period. It is generally measured over a year's period, whether that's the calendar year, tax year or fiscal year.
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Types of Efficiency Ratios Used in Measuring Business Performance The total asset turnover shows how efficiently you are using both long-term and short-term assets. In other words, it measures how efficiently each dollar of your company’s assets is generating sales. An ideal figure is a high total asset turnover. A total assets turnover ratio of 4 means that for each dollar of total assets, the business earns 4 dollars in revenue. It is computed as shown;
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Asset Management World Finance » Asset Management. Asset management is defined as the systematic process of long term maintenance of assets, with the objective of bringing out the best results from the assets. Asset Management is an important part of the financial sector throughout the world. It manages huge amounts of investments and helps clients reach a financial goal within a specific period of time. Asset management offers a wide range of investment options.
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Turnover Resources and Advice Turnover in business refers to the net rate at which an employer gains, loses and, by implication, retains employees.The cost of employee turnover to employers can be high, and involves many factors that are often overlooked by the employers.urnover in business refers to the net rate at which an employer gains, loses and, by implication, retains employees.
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- Total assets at the beginning and end of the 2014 fiscal year were $278 billion and $293 billion respectively, for an average asset base of $287 billion. AT&T’s asset turnover ratio in 2014 was therefore 0.46 ($132 billion / $287 billion).EFINITION of 'Asset Turnover Ratio'. The ratio of the value of a company’s sales or revenues generated relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.
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What Is Asset Turnover? Asset turnover provides insight into the efficiency question and is defined as the ratio of the company's sales to its assets. In general, the more revenue a company produces from its assets, the more likely it is that the company will be successful.
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total asset turnover Asset Turnover. A ratio of a company's net sales to total assets. It is a measure of how efficiently management is using the assets at its disposal to promote sales.A high ratio indicates that the company is using its assets efficiently to increase sales, while a low ratio indicates the opposite. financial ratio that indicates the effectiveness with which a firm's management uses its assets to generate sales. A relatively high ratio tends to reflect intensive use of assets. Total asset turnover is calculated by dividing the firm's annual sales by its total assets.
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How to Compare an Asset Turnover Ratio Year to Year Divide each year’s sales by its total assets to calculate each year’s asset turnover ratio. In this example, divide $1.8 billion by $750 million to get an asset turnover ratio of 2.4 in the most recent year. The ratio in the previous year is 1.88.
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- C1 [C or U] the ​amount of ​business that a ​company does in a ​period of ​time: Large ​supermarkets have high turnovers (= ​their ​goods ​sell very ​quickly). The ​business has an ​annual turnover of £50,000. More examples. 1  The seven ​ companies have an ​ aggregate turnover of £5.2 million.
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Inventory Turnover Ratio: Definition, Importance and Measuring Inventory turnover ratio, commonly known as Inventory Turnover is one of the most important ratio in the line of retailing that not only shows the health of a sound business but presents a view how a business is operating efficiently. The inventory of a retail store represents the largest expense to its total expenditure cost.
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Asset management Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group.It may apply to both tangible assets such as buildings and to intangible assets such as human capital, intellectual property, and goodwill and financial assets.Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others.sset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others.
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Chapter 13: Inventory Management Inventory turnover: Ratio of average cost of goods sold to average inventory investment. The turnover ratio indicates how many times a year the inventory is sold. Generally, the higher the ratio, the better, because that implies more efficient use of inventories.